Paccar charges a U.K. parts center

Nov 03, 2004

Bellevue, WA-based global truck maker Paccar is taking a $33-million charge against fourth quarter earnings this year to open its own in-house aftermarket parts distribution facility in the United Kingdom in support of its DAF truck line.

The company is paying RAC GBP $33 million as part of an early termination agreement regarding the distribution of Leyland aftermarket parts to DAF dealers and customers in the U.K. In the future, Paccar said parts will be stored and distributed in its own $20 million facility at Leyland, England.

“Beginning in the fourth quarter of 2005, Paccar will establish a single distribution parts channel for DAF U.K. dealers,” explained Bill Jackson, Paccar VP. “For Paccar, it will generate additional parts sales and margins and lower the cost of parts distribution. In addition, Paccar Parts is implementing electronic parts scheduling and an all-make parts program for DAF dealers.”